AIA's Financial Overview Post IFRS 17 Transition
Overview of IFRS 9 and IFRS 17 Accounting Standards
Invested
Assets
Assets
Liabilities and Equity
AIA
IFRS 9 Financial Instruments
■ Measurement mostly at fair value
Impairment model: Expected Credit Losses
■ Classification of assets into FVTPL, FVOCI and
amortised cost
Insurance
Contract
and Other
Liabilities
IFRS 17 Insurance Contracts (1)
■ Best Estimate Liabilities (BEL)
■ Risk Adjustment for non-financial risks (RA)
■ Contractual Service Margin (CSM)
OCI
OCI (2) Balances
Deferred acquisition costs no longer exist
Other
Assets
Total
Equity
■ Mark-to-market on FVOCI fixed income assets
Reinsurance included under IFRS 17 liabilities
Allocated
Equity
▪ Effect of changes in discount rates on insurance
contract liabilities for non-par business (3)
Notes:
(1)
IFRS 17 insurance contract liabilities are presented net of insurance contract assets and assets for insurance acquisition cash flows
(2)
OCI comprises fair value reserve and insurance finance reserve
(3)
Excluding unit-linked with significant protection
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